In this episode of ETF Spotlight, I talk with Paul Dellaquila, Global Head of ETFs at Defiance. We discuss the fifth generation wireless technology or 5G, and related ETFs.

The International Telecommunication Union (ITU), a UN body, has a set of requirements for the technology. It should offer download speeds of at least 20 gigabits per second, response times or "latency" of less than 1 millisecond and the ability to connect at least 1 million devices in one square kilometer. So, we may be on the brink of a communications revolution as 5G could change the way we live, work, travel and communicate.

Major telecom companies have just started rolling out 5G service in very limited areas. Verizon VZ enabled the service last month in parts of Chicago and Minneapolis. AT&T T has started 5G service trials in parts of 19 cities. Sprint S plans to launch the service in nine cities by the end of this quarter.

Samsung SSNLF was among the first phone makers to introduce a 5G smartphone. Apple AAPL settled its multiyear legal dispute with Qualcomm QCOM recently, so we could see a 5G iPhone next year.

We discuss the current status of deployment of the technology. The technology will have an enormous impact when it becomes mainstream. We talk about the 5G value chain.

The Defiance Next Gen Connectivity ETF FIVG is the first ETF focused exclusively on companies involved in research, development and usage of 5G technology. Its top holdings include CommScope COMM , Xilinx XLNX and Skyworks SWKS .

US wants to be a leader in the space and China had identified 5G as a "strategic emerging industry" in its Five Year Plan. However, theChinese telecom giant Huawei, which plans to launch a $600 5G phone and the world's first 5G TV later this year, is privately held.

The technology will provide a big boost to the Internet of Things, self-driving cars,

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